(7 years, 11 months ago)
Public Bill CommitteesIt is a pleasure to begin the day by responding to this particular amendment. At its heart is an attempt to put into the Bill a requirement to have something akin to the existing cross-compliance regime. I will come back to that later.
There are two key points I would make about the amendment. Clause 2 and clause 3, which we will come to later, as already drafted, make allowance and provision for a Government to create such conditions through an affirmative statutory instrument should they feel that that is the right thing to do. Under clause 2(2) it is open to the Government to say that there are conditions attached to entry into these schemes and that there may be, under clause 3(2)(g), penalties for breaches of the regulatory baseline.
There is already an option, given how the Bill is drafted, for a Government to bring forward proposals of that sort through an SI. My argument is that the detail spelled out in amendment 84 would be the appropriate level of detail that might be in a particular SI brought in under, for instance, clause 2, and probably addressed through anything brought in under clause 3 as well. We could do that, if we wanted, through the SI and that would be the appropriate place to do it.
However, my general view is that we should separate out as far as we can the regulatory baseline, which should apply to everyone equally whether they are in or out of a scheme, and conditions that we attach to financial schemes to support farmers to go above and beyond that regulatory baseline. The danger of the amendment here, as I see it, is that the very first thing it says, in 3A, is:
“It shall be a condition for receipt of financial assistance…that the person in receipt can demonstrate”,
that they abide by all those things.
We want people to feel good about entering these schemes. When a farmer phones up the Government, Natural England or whichever agency is administering the scheme to say, “I am really keen to enter your new agri-environment scheme,” if the first thing that happens is that they say, “Well, we’ll send out an inspector from the Rural Payments Agency with a clipboard to try to find fault and see whether your ear tags are wrong, or there is a trivial problem of that sort that will disqualify you,” it will put people off entering the scheme.
We already have this problem with the cross-compliance regime. I explained on Tuesday that, having wrestled with the cross-compliance regime as a Minister for five years, I can confirm that it is completely dysfunctional. The regulations set out in EU law and the penalty matrix mean that incredibly disproportionate penalties are sometimes applied to farmers that have no bearing whatever to the scale of the breach in question.
We already have problems with, for instance, large arable farms that might have a small pedigree herd of cattle that they keep going as a labour of love. If they have some trivial ear tag problem—an ear tag goes missing and they have not managed to replace it yet—and are unlucky enough to be inspected, they can end up with penalties of £40,000 or £50,000 for such small things. I remember many cases in this area. I remember a farmer who once had a dispute with his neighbour. The neighbour padlocked the gate on the footpath, and the farmer ended up with a £45,000 penalty, such is the nonsense of the existing scheme.
We do not want to replicate that. The danger of accepting the amendment is that a trivial error or mistake on something like an ear tag could lead to somebody’s complete disqualification from entering a scheme, or to an onerous financial penalty that would not fit the breach incurred. Something of this type could be introduced through an SI under the Bill’s provisions, should someone wish to. We should abide by the principle that regulations apply to everyone, that we should not have more inspection on people who enter schemes than those who do not, and that inspection regimes should be consistent and apply to people across the board, whether or not they are in a scheme. For those reasons, the amendment is not appropriate.
The hon. Member for Stroud asked about the Dame Glenys Stacey review. That is now well under way. She is keen to move to what she terms a better, more modern approach to regulation, in which things are better joined up and there is less reliance on an arbitrary rulebook, with people coming around with clipboards and ticking boxes. She wants a more holistic approach to the way we manage compliance on farms and a better understanding of, as I explained on Tuesday, the grey area between incentivising better husbandry and good practice, which can go a long way to achieving environmental and animal welfare outcomes, and accepting that a clear regulatory baseline must be enforced.
We are keen to start moving towards a different culture around regulation that is less about a complex rulebook, which often has lots of unintended consequences and disproportionate penalties, as characterised in our current scheme. We want it to be more about discretion for officers on the ground, whether they be from Natural England, the Rural Payments Agency or the Animal and Plant Health Agency, to exercise judgment in respect of a given farm, and about having a better understanding of the linkage between things that we can incentivise to get better outcomes and the need to adhere to the regulatory baseline.
I am interested in what the Minister says, and he makes a fair point. However, my concern is that this scheme needs to be transparent, fair and rigorous in the eyes of taxpayers. As we said on Tuesday, the closeness of these decisions will change, and taxpayers will want to know that their money that goes to this scheme, and so not on policing, health or other important issues, is carefully spent, and that the scheme is robustly inspected and monitored. We need to be careful about where that balance lies.
I understand that. As I said on Tuesday, we accept the “polluter pays” principle. It is important that we have a clear regulatory baseline. At the moment, in areas such as livestock ID, we have a hotch-potch of different regulations that have come from the EU, and there is lots of inconsistency. We have an opportunity as we leave the EU to tidy up the rulebook and to have a clear and consistent regulatory baseline, and to then build on that with financial incentives.
That is a completely wrong analogy. The right analogy is perhaps with the financial support given to parents. If parents do not comply with the rules and the terms of that agreement with the Government, then the finances are removed and they might even find themselves going to prison. It is a completely different situation and it appears to me that the Minister—with the best will in the world—is making this up as he goes along. It is like, “We could do this, we could do that, we might do something else”. I do not get the impression that the Government have properly thought this through.
I disagree; I have thought it through. If the hon. Lady and a future Labour Government want to do precisely what they set out in amendment 84, the right place to do it would be under an affirmative resolution under sections 2 or 3.
That is not our intention at all. Anyone who knows me knows that I am not a big fan of management consultants. I often come across very talented local agronomists who really understand the landscape and the soil type. If we set them free and gave them the opportunity to work in partnership with farmers, the schemes would work far more smoothly than in the central, bureaucratised system that we have now.
The Minister is asking us to believe that a scheme will administer substantial amounts of public money and will be run by some very impressive and worthy organisations—LEPs, national park authorities and the RSPB. Can he point to any other area of public policy or significant Government spending where that kind of approach is permitted?
It is permitted now. The Soil Association can authorise organic farmers, and there are a number of other accreditation bodies.
If someone is accredited as a member of the Soil Association, they are able to claim a top-up to their basic payments scheme. So, yes, there are areas. In terms of clause 2(5), there is already precedent for that in the way that the EU schemes operate—EU regulations create the power for that to happen. We think it is a good model. Engaging people such as the Soil Association in some schemes could be really powerful.
Likewise, if we are to move to a system where we may want to pay farmers who sign up to something like an RSPCA-assured scheme or another scheme, it is important that we have a legal basis to be able to recognise those schemes. They will have to be UKAS accredited—we must have confidence in those schemes. UKAS has existed for many years. The last Labour Government introduced UKAS-accredited schemes in many areas. It is a successful model.
On that basis, I hope I have been able to reassure hon. Members that our intention in clause 2 is to address a concern that the shadow Minister raised earlier in the debate about how we will administer these schemes. I hope, therefore, that having put down this probing amendment, he will withdraw it.
Scotland has no plan for its future agricultural policy. It will be for Scotland to ask us to add a schedule on its behalf or to bring forward its own legislation. A point was raised on Tuesday in a discussion on clause 1 whether we will make available details of how much money had been spent on delivering certain purposes. The answer is that, as well as publishing the recipients of support, this power would also enable us to publish the purposes and the broad intention of what we are delivering with that power.
Representing a constituency in the north-east, I am mindful of the situation of businesses and farms that cross the Scottish border. Will the Minister help the Committee to understand what would happen if Scotland failed to ask for a schedule or do anything between now and exit day? What would be the situation of support for farmers in Scotland in those circumstances?
Scotland has one of three options: it can bring forward its own primary legislation or it could add a schedule. Its content could range from something similar to what Wales has done, which is a full suite of powers, or it could take the approach of Northern Ireland, which is broadly the powers to roll-over the existing scheme and make modifications but not to make changes beyond that. Finally, it could pass legislation or ask us to add a schedule that gave it the power to continue to make payments but nothing else—not even to modify. There is a range of options, but Scotland needs to do something and have primary legislation or its power to make payments will fall down at the end of 2020.
We have made good progress on an important clause, but we now come to one of the central points of the Bill: where is the money? When will the money be paid and over what period?
The Government are clear that the commitment to fund agriculture in its existing form will remain in place until 2022, or whenever the general election comes, when things may change. The scheme starts only in 2021, so there is a dislocation, which will be important. No Government can fetter their successor, but they can—this is what our new clause seeks to do—put in place a mechanism so that any successor Government know what is implied on how the money should be forthcoming. That is an important part of the Bill. Alongside our argument about powers requiring duties —we lost that one, but we might revisit it—the financial arrangements are crucial. I make no apology for saying that we shall spend a little time on this.
Interestingly, there is unanimity among all the organisations, whether farming ones or green groups, that they want new clause 10. They want a clear mechanism in the Bill so that, whatever happens after 2022, or before that, when the new arrangement comes into place, there is an understanding that future Governments know exactly what is required of them. That is important.
The Minister probably has his 1947 Act in front of him on his table—look how long that lasted, and it was cross-party. There was no attempt to interfere with the 1947 Act. The Conservatives agreed when they came back in 1950 or 1951 that they would continue on the basis of that farm system payment. We are asking the same and we expect this piece of legislation to last 60 years. That might be ambitious, but if we get it right, that is the period we are talking about.
We know and support the direction of travel, but we want to know how it will be funded in due course in terms of a mechanism. That is crucial to the industry. It needs to know the longer-term requirements for food production, forestry, heritage and landscape. They will change dramatically over the next 60 years as they have done over the past 60 years. We hope they will change for the better because we would argue that we have done enormous damage. The problem is that the Bill is silent and has no mechanism.
Those of us who went to the lobby last Tuesday saw many organisations—there are too many logos on my bit of paper to fit any more on there—but they are as one in support of new clause 10. I hope the Government treat it with enormous seriousness. If they are not willing to accept it, there will be a lot of disappointed organisations and I would argue that the Bill will lack its central tenet, which is, as always, where and how the finance will be locked into place.
The new clause is about certainty and the predictability of the Bill. There is a degree of understanding that no Government can say how much money there will be and where it will come from, but we can have a mechanism to be reviewed every year. The Government could then say: “There will be money available to do all the wonderful things we have all signed up to.” That is why it is so important. Although the new clause is being debated early, it has to be debated at considerable length.
We ask the Government to consider the new clause very seriously. They have obviously been lobbied by all those different organisations, which effectively are the countryside—no organisation would not sign up to it. NC10 sets a duty on future Governments to report annually on how much money has been spent to meet the policy objectives set out in the purposes of clause 1(1), and whether this was sufficient to meet these objectives. Again, we support this important direction of travel, but it must say how it will work, which is entirely dependent on where the money comes from. There must be a mechanism in place to say how it will operate in future. No, we cannot say what money, but we can say how any future Government goes about trying to report on what the money should be available for and where it should go.
Greener UK, an interesting amalgam that spent a lot of time talking to the Government, is largely very pleased with the Bill, but pointed to an independent assessment commissioned in 2017 that estimated the minimum costs of the environmental land management commitments at £2.3 billion. That is down on the current £3.2 billion, but it is the minimum—the baseline. Some of us would argue that it must be higher than that, at least at the current level, certainly in the early days because we do not know how it will work.
If the Minister does not accept the approach set out in new clause 10, what approach will the Government take given that they have won over a lot of the green organisations on the basis that this is what could and should be happening? It is about making a commitment. As I say, a Government cannot commit to money future Governments will spend, but they can commit to the mechanism. We ask the Government to look very closely at the new clause and hope they listen to us and all those organisations.
I could tell the Committee of countless organisations—I will not because we are short of time and I would rather finish before the 1 o’clock break. The Minister has received the same words. I hope they meant something and that he is willing to respond. Otherwise, there will be an awful lot of very disappointed organisations.
The organisations to which my hon. Friend refers are probably the same organisations the Minister mentioned. If they are willing to be held to account to ensure that this is done well, it makes sense to us that the Government ought similarly to be willing to have that security and accountability as we implement the scheme.
My hon. Friend is right. Again, that is the basis on which this Bill has been brought forward. There has been a degree of consensus—we have tabled probing amendments that have not necessarily gone with that consensus, but at this stage there is unanimity. The organisations want to know what the mechanism will be and want it in the Bill. Otherwise, it is all just promises. I am afraid the Government will have to listen and either accept the new clause or come up with a better alternative. We will be listening very carefully, presumably this afternoon, to what they say. Otherwise, it will be impossible to believe that the Government can deliver on their commitments.
Ordered,
That the debate be now adjourned.—(Iain Stewart)
(7 years, 11 months ago)
Public Bill CommitteesI beg to move amendment 76, in clause 6, page 5, line 9, leave out “negative” and insert “affirmative”.
The Chair
With this, it will be convenient to discuss the following Government amendments: 2, 3, 4, 5, 7, 8, 18, 12, 13 and 14.
It is a real pleasure to serve under your chairmanship, Sir Roger. We have heard so much from my hon. Friend the Member for Stroud this morning and afternoon: I will now give him a break. Part of the reason for that is that my hon. Friend deals with the pure farming and agriculture issues, while I seem to be doing the really boring “techy” and legalistic stuff. [Interruption.] I will try not to make it boring.
However, when it comes to the text of amendment 76—leave out “negative” and insert “affirmative”—I would forgive Committee members for returning to their online shopping or whatever it is they are doing. Nevertheless, this is quite an important issue. It occurs in several places throughout the Bill. We were concerned about it during the passage of the European Union (Withdrawal) Bill and we have not stopped being worried about it now.
I notice that the Minister has a series of amendments in the same grouping. I hope that he will confirm that they deal with the concerns that I have raised by tabling amendment 76 and various other amendments to later parts of the Bill; it seems to me that the Government may have taken our point. However, I need to hear the Minister confirm that.
Amendment 76 is to clause 6. As my hon. Friend explained, under clause 6 the Secretary of State would have the power to modify the legislation governing the basic payment scheme. The problem for us is twofold. First, the Secretary of State has that power by regulation. I will expand on these arguments now, because they relate to other parts of the Bill; if I explain them fully this time, that might avert the need to do so on absolutely every occasion when this issue arises. I see that the hon. Member for Gordon is nodding furiously.
The problem is that the Secretary of State is attempting to give himself the power to change the legislation by regulation, but he seeks to do that—as the Bill is currently drafted—through the negative procedure. I will forgive Members for not being entirely au fait with the difference between the negative and the affirmative procedure, although Sir Roger and I served together on the Select Committee on Procedure for about five years. [Interruption.] And the hon. Member for North Dorset serves on it now, so I expect he will know exactly what I am talking about. The Procedure Committee spent a great deal of time bending its head around that matter, but Members can be here for a large number of years and still have no clue what the difference is. In the interest of teaching grannies to suck eggs, I will attempt to explain what the difference is and why it matters.
Members will have heard the power that the Secretary of State wishes to have referred to as “Henry VIII clauses”. That phrase came up a lot during the passage of the European Union (Withdrawal) Act 2018: the Opposition were concerned about the extent of the use of Henry VIII powers. Those powers are not unheard of, but it is very concerning when Bills have so many. We are equally concerned that this Bill contains a large number of those powers. A Henry VIII clause enables Ministers to amend or repeal provisions in an Act of Parliament using secondary legislation that is subject to varying degrees of parliamentary scrutiny. We need to pay particular attention to those clauses, because they enable a law to be changed without what most of us would understand as a normal level of scrutiny in this House. A helpful guide about the use of statutory instruments has been produced by the House of Commons Library, if Members are sufficiently interested: it is factsheet L7—“Statutory Instruments”.
The most important thing to understand is the difference between the negative and the affirmative procedure. The negative procedure is what, in this Bill, the Government say they wish the Secretary of State to be able to use when modifying the law. What happens is this:
“The instrument is laid in draft and cannot be made if the draft is disapproved within 40 days (draft instruments subject to the negative resolution are few and far between)…The instrument is laid after making, subject to annulment if a motion to annul (known as a ‘prayer’) is passed within 40 days.”
Unless something happens—it is usually the Opposition who make that prayer, which nowadays often takes the form of an early-day motion—that change to legislation will happen. That is the negative procedure.
Under the affirmative procedure, however, an instrument cannot become law unless it is approved by both Houses. Should the Secretary of State feel that he needs all these powers—although it is regrettable that he feels he needs them, in the absence of being able to put into the Bill the schemes and schedules that we would like to see—it is far better for them to be exercised according to the affirmative procedure. Under that procedure, the instrument is laid after making, but cannot come into force unless and until it is approved, so there is a far stronger role for Parliament.
When a Bill seeks to confer so much power on the Executive, we as parliamentarians have to be very careful about giving that power away. We would be enabling the Secretary of State to make substantial changes to the measures that we are being asked to agree—and this comes up throughout the Bill, not just in this clause. That is not something we can do lightly. Parliament needs to consider the issue carefully, because we are talking about an awful lot of power in the hands of one individual, subject to precious little scrutiny. That is not something that we can be relaxed about.
The hon. Lady is making a point that is incredibly important for us all, as parliamentarians. Does she agree that the nub is not whether it is by the positive or negative procedure that these changes could be made, but to have the discretion of Ministers —I appreciate for some that might be a leap of faith—to opine on the scale of the change? Thus, for big changes the affirmative procedure could be used, and for small, housekeeping, tidying-up exercises, the negative could be used. One would not want to go through the whole of the positive SI procedure to change a word or a letter here or there. Might that be a way of addressing the perfectly legitimate concern that she raises?
The hon. Gentleman makes perfect sense. Our concern, though, is that the changes that Ministers seek the power to make are not small or technical—they are quite significant, and go to the heart of what the Bill is about. For that reason, we are not inclined to allow the issue just to go through unchallenged.
At the time of the withdrawal Act, we were assured that the negative procedure would be used only in such circumstances as the hon. Member for North Dorset describes, but many would agree that with all the SIs, and there will be a lot, there is a danger that Ministers—through a desire to get things done, perhaps, or just to get to the next stage of the process—will overuse that negative procedure. I am sure there is no ill intent here and that they are not trying to do things behind Parliament’s back, but we need to be incredibly cautious about the extent of the power being held by the Secretary of State.
I ask this sincerely, to try to get to the answer: what I do not know, but the hon. Lady might, is whether we are aware of a trigger, either in the committee chaired by, I think, the Leader of the House or in inter-ministerial discussions, where somebody turns around and says, “No, that is an affirmative; no, that is a negative.” Is it the usual channels who say that? Or is it purely at the discretion of the individual Minister of the Crown charged with the powers in a statute? Is there some offline discussion of, or weighing of the balance of, the argument? I do not know the answer.
Unfortunately not. In the case we are looking at now, it is laid down in the Bill—well, it is at the moment, but I am optimistic that the Minister will reassure me—that it will be the negative procedure. Most often, when a Minister has these powers, it is specified, alongside where that power lies in the Act, how it should be exercised. I do not know whether that is challengeable later, although I am happy to take advice on that; I am not sure that it is, and I cannot think off the top of my head of any occasions when that has happened.
The sorts of policies we are talking about have previously been EU policies, and the decision on whether to scrutinise them has been down to the European Scrutiny Committee. However, I cannot think of a single case where the Committee has called one in for debate and it was not all done and dusted and agreed before it even got to this place.
That is an argument we often hear. The challenge to me is, “Why are you so worried about this now? This was all done in Brussels before.” To an extent, I take that point, but the point of this exercise is that we now, for the first time in a very long time, have the opportunity to develop our own agricultural policy. If we are going to do that, let us do it right. Let us do it really well. Let us ensure that, just because Ministers cannot quite decide exactly what they want to do at this stage—I think that is what underlies a lot of the vagaries of the Bill—we do not give them too many powers or give them those powers in a way that does not enable the fullest scrutiny by Parliament.
These are important issues that are subject to amendment by Ministers, and it would be much better if today we were debating exactly what they intended to do with the powers, rather than which mechanism should apply and whether they should have the powers at all, because what people are really interested in is what will happen. What support will be available? How will it be administered? What is their right to challenge? It would be better for us to be debating that, but insufficient work of that nature seems to have been done as yet. That is a theme that we keep coming back to.
I defer to the hon. Lady’s knowledge of parliamentary process, which is far superior to mine. I have heard many such debates before and I have a lot of sympathy with them, because as Back Benchers, it is really important that we ensure we respect parliamentary scrutiny. However, I am also the kind of person who likes to see speed, and I have also seen a lot of parliamentary scrutiny become parliamentary process that has bogged things down and meant that we have taken much longer to come to a decision that we could have made very quickly. That worries me as well, so does she not think that we have to strike the right balance?
Absolutely; I completely agree. I have sat through some of these so-called line-by-line considerations, and that can be a very underwhelming experience. The feeling is that the scrutiny of the legislation is—well, where is it? It is just a to-and-fro across the room. But if I may say so, I think that this Committee is doing a reasonable job. [Hon. Members: “Hear, hear!”]
We are excellent, aren’t we? We seem to have a Minister who is willing to accept that there are problems with his Bill, and we do not always get that. I hope that this will be a rather better experience than the one that the hon. Member for Mid Worcestershire and I had previously.
In reply to the hon. Gentleman’s point about balancing speed with being thorough, I would say that the Government have had quite a long time to come up with something fuller than this. The Bill is rather empty, and there is lots of detail that could have been included. The Government have had sufficient time to do that, so to turn up and say, “Actually, we just want some powers and we’ll decide what to do with them at a later date,” is not good enough. We will continue to make that point.
Some people get very anxious about the overuse of delegated legislation. I have never been a Minister, and probably never will be, but I understand the attraction of it.
I didn’t catch what the hon. Gentleman said. [Laughter.]
I understand that Ministers will want, as the hon. Member for Mid Worcestershire said, the ease to get on with things and not have to bother with troublesome MPs, and subject themselves to hours and hours of process. However, sometimes Parliament needs to say to Ministers, “Sorry, but in the kind of democracy that we have we can’t allow you to proceed in a way that does not allow parliamentary scrutiny.” Some people get very anxious about the overuse of delegated legislation. I used to feel that they were sometimes over-fixating on it, but having looked at the Bill more closely and gone through the withdrawal Act process, I am becoming one of those people who is inclined to worry about the extent to which Ministers are gathering up powers, and how they could be used in future.
This is not just about the current Secretary of State and Minister; it is about the future. I do not think that whether people are urban or not is the point. Governments will have competing priorities in the future, and they will not be the same ones that we have now, but I want to ensure that farming and agriculture are properly supported in a stable way that allows for certainty, long-term planning, greater food security and all the good things that we have discussed.
I am interested in what the hon. Lady is saying about the affirmative procedure. I wonder whether she thinks that in at least some cases the super-affirmative procedure would be appropriate.
We need to have a procedure that is appropriate for what we are trying to do. I think the best procedure on this issue would be to put something in the Bill—I do not know how much more super-affirmative we can get than that. We want to see what Ministers will do with the powers. That is all we are asking for. At the moment, the Government are asking us to take a leap of faith, and we are not prepared to do that.
We were told during the passage of the withdrawal Act that statutory instruments will not be used to make policy, but I would argue that that is exactly what they are being used to do in the Bill. Joelle Grogan from the London School of Economics puts it quite well. She said that delegated powers should not be used for policy-making, and that the former Secretary of State for Exiting the European Union, the right hon. Member for Haltemprice and Howden (Mr Davis), during the withdrawal Act process, explicitly mentioned in the foreword to his White Paper that they will not be used as
“a vehicle for policy changes—but…will give the Government the necessary power to correct or remove the laws that would otherwise not function properly once we have left the EU.”
The measures in the Bill clearly exceed that commitment, which was made by the former Secretary of State as we considered the European Union (Withdrawal) Bill. This is serious. We did not really believe that assurance—I think we have been proved right—and I am not inclined to believe the assurances being given now either. Parliament needs to hold the Government to account much better.
Is not one of the issues that the negative procedure gives very little opportunity for people outside the House to raise concerns with us? A lot of issues we have been able to raise during this process have actually been fed to us by people who know about them and have faced them on the ground.
That is a good point. If there is any purpose to our being in Committee two days a week for however many weeks is necessary, it is that we want to improve the Bill.
The process we have followed, including our taking evidence, has enabled us to make suggestions, many of which—although not all—came from third-sector organisations, interest groups or the National Farmers Union, for example. We have really gained from their expertise. The Bill will clearly be amended—it will not be the same as it is now by the end of the process—and I genuinely think that we have benefited from that input. Input is welcome, and it ought to be available to the Government if they intend to make substantive changes to any other measures as well.
The only other thing I say to that is that we will come later to amendments that address consultation and how we might better involve other organisations in shaping our future policy. It is important to note that, by using these affirmative or negative procedures, we cut out from the process not only expertise from organisations but most MPs as well. Let us not forget that Members do not just stick their hand up and get on one of those Committees. There are filters that sometimes enable and sometimes prevent Members from exercising the privilege of taking part in the consideration of measures.
There are many reasons to be concerned about the extensive use of regulations to amend the very legislation in which those regulations are contained. I have deep reservations about the overuse of the negative procedure. I hope that the Minister will confirm that his amendments, which are grouped with my amendment 76, have been tabled to address some of those concerns. Although they will not address my concerns about the use of regulations, he might at least assure me that he intends to use the affirmative procedure, rather than the negative.
I will also speak to a large clutch of Government amendment—amendments 2 to 5, 7, 8 and 12 to 14—in this group. To reassure Committee members, most of them are identical, so I can deal with them quite quickly.
I begin by addressing the points raised by the hon. Member for Darlington regarding her amendment 76. The amendments we have tabled will not achieve exactly what she is trying to achieve with her amendment. However, they will achieve something important, which is to establish that the affirmative procedure will be used if consequential amendments need to be made to primary legislation. I will explain that in more detail later. It is a technical point, but having been on certain Committees, she is clearly familiar with it.
I am not as reassured as I was hoping to be, I am afraid. I was ready to withdraw amendment 76, but I have to disagree with the Minister about the appropriateness of the use of the negative procedure in clause 6. Although he says that it is not really that important and that this is a legacy scheme, we could end up with this legacy scheme for quite a while, and it is very important to the livelihoods of many people. We cannot accept that procedure, and I would like to test the view of the Committee.
Question put, That the amendment be made.
This did come up quite a lot on Second Reading. I think my hon. Friend the Member for Bristol East had something to say on it, or somebody else referred to succession planning. Farmers could take the money and then another member of the family could decide to carry on with the holding.
It is an irritant for me that every time farmers have been referred to in this Committee so far—I have not mentioned this so far—they have been referred to as “he”. But the right hon. Member for Scarborough and Whitby went an extra stage and said, “The farmer and his wife”—[Laughter.] There is a line. I just think we can do a little bit better than that.
I will not go down that line. The Chairman will be relieved to hear that I am not going to get involved in devolved politics. I think this has been a very useful debate that has been far and wide in scope. It has not really been about the amendments, but the stand part has allowed us to look at some of the possibilities of what will happen—2021 is not very far in the future. People will be doing their planning now, particularly if they have it in mind to leave their holding, and they will need security, certainty and some very good advice on whether that is the right thing to do. I beg leave to withdraw the amendment, but I am grateful for the discretion of the Chair, which has allowed us to get through this issue.
Amendment, by leave, withdrawn.
Clause 7, as amended, ordered to stand part of the Bill.
Clause 8 ordered to stand part of the Bill.
Clause 9
General provision connected with payments to farmers and other beneficiaries
I beg to move amendment 77, in clause 9, page 7, line 10, leave out “negative” and insert “affirmative”.
The Chair
With this it will be convenient to discuss amendment 78, in clause 9, page 7, line 10, at end insert—
“(6) Before making regulations modifying legislation under this section, the Secretary of State must consult persons who, in his or her opinion, are representative of the sector to which the regulations will apply, or who may otherwise be affected.”
This amendment would ensure there are checks and balances on the use of Ministerial powers.
Amendment 77 again raises the issue of the negative and affirmative procedures. I will not test the Committee’s patience by going through all of that again.
I will resist the temptation of the Whip. If Members look at page 7 of the Bill and see where that is included, they can probably get the gist of what I am trying to achieve with amendment 77. It is worth asking the Government to consider this because clause 9(2)(b) says that the Secretary of State can by regulations make modifications.
To be fair to the Minister, he does attempt to put parameters on what the Secretary of State would be able to do, but he talks about simplifying or modifying the operation of any provision. “Simplifying” and “modifying” are quite subjective terms: what he considers a simplification of a measure, I might consider a drastic change or something that would do harm to those subject to it.
Again, the power in the clause is slightly wider than it ought to be to justify the negative procedure. I would be interested to hear the Minister’s response to that point and whether he might consider, at later stages, amending the “simplifying or improving” terminology to justify his desire for the negative procedure and, if not, whether he might consider making an alteration to allow use of the affirmative procedure.
I hope that the Minister can name at least 70 of them, because the Department for Environment, Food and Rural Affairs has launched 70 consultations in 2018 so far. They are all on really important things, of course, but I would say that this measure, in clause 9, is as important as some of the things.
Does my hon. Friend agree that although a general consultation might be done on an area of Government policy, specific consultations about specific regulations can very often achieve far more and elicit very specific objections and reasons for modifying or, indeed, dropping those regulations?
I think they can. There is no doubt that there are some very poor examples of consultation—consultations undertaken not just by the Government, but by councils and other public bodies—but consultation can also be an incredibly positive thing to do.
I think that I recall Jacqui Smith, a former Member for Redditch, saying, when she was a junior Health Minister, that she feared that consultation was regarded as just a period of time between having an idea and putting it into practice. That is certainly not what we advocate in any way, but as my hon. Friend the Member for Ipswich says, if consultation is done correctly—if it is on the right issues and involves the right stakeholders—it can have a very beneficial impact.
One of the purposes of consultation that is often overlooked, particularly when dealing with industries or sectors, is to allow input into the process of public policy. Failure to allow that input will often lead to judicial review, particularly if businesses or organisations face a significant loss or disadvantage in the marketplace. The power of the courts is often a stimulus for consultation, which is needed so that any Government can have something to rely on and rest their case on.
I am not sure that I completely understand what the hon. Gentleman is getting at, but where there is a statutory duty to consult, the basis for challenge often rests on how well that consultation took place. To assist public bodies in carrying out consultations, the Cabinet Office has issued guidance on when they are appropriate, who ought to be consulted and how it all ought to be done, which is helpful in addressing that challenge.
My amendment is probing, and I do not necessarily seek to get it into the Bill, but we need to understand the Government’s intended approach to involving sector bodies. The Minister clearly intends to rely on the expertise of various sectors as he goes about implementing the measures in the Bill or—perhaps more accurately—deciding which measures he wishes to implement. He has signalled that there will be a role for third sector organisations in particular. I see that as a very good thing, but we need to better understand how, and on what basis, the Government intend to achieve it. These are not passive bystanders, but people who want to be actively engaged and make a difference to the areas that many of them have spent their whole lives championing.
It is important that we get this right. So far this year, the Government have seen fit to consult on some really important things. To read out a few at random, there has been a very broad consultation on the future of food, farming and the environment, as well as consultations on bovine tuberculosis, on banning third-party sales of pets in England, on air quality and on using cleaner fuels for domestic burning. The measures in clause 9, and indeed elsewhere in the Bill, are equally worthy of engagement with a wider range of voices than seems likely at the moment.
I have therefore tabled a consultation amendment to clause 9 and, I think, to one other clause in the Bill. I chose clause 9 in particular because, as the explanatory notes state, it
“empowers the Secretary of State to make regulations which modify the ‘horizontal basic act’”—
which the Minister has helpfully explained to us—
“as incorporated into domestic law carried forward and modified according to the EU (Withdrawal) Act 2018…in relation to England…The horizontal regulations…include rules on application procedures, calculation of aid and penalties, payment windows and payment recovery. They include rules on checks to be carried out, including databases used to check compliance, audits and farm checks and administrative checks. They also include rules for the implementation of the farm advisory system, calculating the funds for public intervention purchase and the establishment of a single beneficiary website”.
Those are all things on which the sector would like a say, because it will have opinions about them.
We have already heard from the Minister on numerous occasions about how the Secretary of State will be speaking to various people in various sectors about what is going to happen, but does she agree that we need something statutory? People need to be certain that they will be consulted, when that will be and that they will be consulted on the precise details of the regulations coming in that will affect them, because they are the ones who know most about these sectors.
I am persuaded by what my hon. Friend says, and he tempts me to insist further upon a duty to consult. I had not intended to do that at this stage, but it might be something that we return to. We need to listen to what the Minister has to say in response.
A lot of the problems rest with “improving”, “simplifying” and “modifying”, because who is to say what those things really mean? It is highly contestable, and challenge could come from a number of quarters. The Minister needs to be far clearer at this stage exactly what he means when he says, “We’ll be talking to—” or, “We’ll be involving—”. It seems very casual and quite loose. It is great that the Minister has good relationships with the sector—that is healthy, and I am in no way critical of it. However, I would like a way of ensuring that that good, healthy relationship can be enjoyed by his successors too. The Bill leaves things far too loose, with the potential for voices outside Government to be ignored entirely. Nowhere does it say that the Secretary of State must do many of the things in the Bill, as we have said at length.
I do not want to insist on that as a way of being burdensome to the Government. I understand that it means an extra process, that there is a cost attached and that it requires time; and, as we have discussed, there is a real desire to get on with this, which I share. However, the Cabinet Office guidance on consultations, which was revised only this year and which is therefore something that the Government have a commitment to more broadly—which is a good thing—says that consultations should
“Give enough information to ensure that those consulted understand the issues and can give informed responses”,
and should
“Include validated impact assessments of the costs and benefits of the options being considered when possible; this might be required where proposals have an impact on business.”
The measures we are discussing absolutely have an impact on business—a very direct and immediate one—so I see no justification for not having a way of ensuring that the needs of those who represent the various sectors can be heard.
The Cabinet Office guidance also says that
“Consultations should last for a proportionate amount of time”—
they do not have to take forever—and that
“Consulting for too long will unnecessarily delay policy development.”
Responses should be published quickly,
“within 12 weeks of the consultation or provide an explanation why this is not possible.”
The consultation continues:
“Where consultation concerns a statutory instrument”
the Government should
“publish responses before or at the same time as the instrument is laid, except in very exceptional circumstances.”
I would like to know what is so exceptional about what the Minister is doing that means it needs to be done so quickly that it leaves no time to undertake some form of consultation. The evidence sessions were great, but that is not the same thing, and the lobbying that is happening is not really adequate and is no replacement for a decent process.
I will try to be as brief as possible. Amendment 77 repeats the earlier debate on clause 6, which also proposes a negative resolution. For the same reasons, we believe that a negative resolution is appropriate in this case, because it deals with technical issues and the switching off of certain requirements that currently sit in the scheme to try to improve it, simplify it and remove some of the frustrations that we have at the moment. That should be seen in the context that this is a time-limited scheme anyway, which will expire at the end of the transition.
I note what the hon. Member for Darlington says about the term “simplifying” or “improving”; I know the Lords Committee that looked at this also raised that point. We have not quoted the Agricultural Act 1947 today, but I know many hon. Members like it, so let us look at section 1, which talks about the importance of
“a stable and efficient agricultural industry capable of producing such part of the nation’s food and other agricultural produce”,
as it is deemed “desirable to produce”. Now, if I had drafted a clause along those lines and put it in, everyone would have said, “What does ‘desirable’ mean? What does ‘stable’ mean? What does ‘efficient’ mean?” The truth is that we can have false precision on these things. It is clear what we mean by “simplifying” and “improving”.
We should also view this in the context of subsection (2)(a), which is simply the power to switch off certain provisions altogether. It is very clear in the context of subsection (2) that our preference will be to switch off things altogether where they serve no purpose or we think we can do without them, but where we think they serve some purpose we can simplify and improve them. That is understood.
I should also say that we have to understand that at the moment, the best that Parliament will get on things such as this is an explanatory memorandum, explaining the latest thing that the EU has done to us. Most of these sorts of decisions are made by EU delegated acts. There is literally no democratic input at all on some of those requirements, and often things get made up on the hoof by EU auditors working for the Commission, who create all sorts of new processes that have not been discussed or agreed at any level within the European Union.
This is an approach that I believe is right. To explain the types of things that we want to deal with here, I have to deal as Farming Minister with something called RPA appeals. Every month I get a bundle of cases in my box that are farmers who maybe missed a deadline because something got lost in the post or there was a problem with their application form. The system is hideous; I have spent hundreds and hundreds of hours wrestling with lawyers in our Department to try to find a way of doing what is just and fair and finding in favour of farmers, only to find, all too often, with deep frustration, that EU law does indeed require me to find against them. The system we have in the so-called horizontal regulation is manifestly unjust and unfair, and we must resolve to improve it.
I turn now to the hon. Lady’s amendment 78. She explained her approach in great detail, but let me just say that she rather undermined her own argument by pointing out that DEFRA, without any statutory requirement necessarily to do so, is quite capable of churning out a great many consultations. I can tell her that, more often than not, the conversation I have with our officials is, “Do we really need a consultation on something as small as this?” and the answer is invariably, “Yes, because that is what Cabinet Office guidelines require.”
I do not believe that we need a statutory requirement to have a consultation on this. The only area where we have a statutory requirement for a consultation in the DEFRA field is on issues of food safety, where there is a written statutory requirement always to consult, but that does not stop us consulting. We consult on everything, and if it would give the hon. Lady some reassurance, I can give her an assurance, here on the Floor of the Committee, that we would consult on the changes that we intended to make under clause 9.
I would envisage our having a single strike at improving the system and probably not changing it much beyond that. It is inevitable that we would issue a consultation on all the changes that we would seek to make, and we would try as far as possible to do everything in that one go. It might be the case that there was something we missed and at a later date we might want to do a less formal type of consultation, but I take the opportunity here in this Committee to give the hon. Lady an assurance that we would consult on that first major batch of changes that we would seek to make, but we do not need to be forced to do so by a statutory requirement—as I said, we are quite capable of doing that anyway. I hope on that basis that the hon. Lady will withdraw amendment 77 and we can prepare to adjourn.
I have listened carefully to what the Minister has said on amendment 78 and I accept, I think, what he is trying to say. I think he has tried to assure the Committee that there will be some kind of process put in place, so I will ponder that. I might return to that, but what he said was very helpful. In the interest of consistency, I feel I need to press amendment 77.
Question put, That the amendment be made.
(7 years, 11 months ago)
Public Bill CommitteesI was going to share with the shadow Minister what I have just consumed for lunch, which I think will make my point. In the Members’ Tea Room, I had a bowl of delicious vegetable and pearl barley broth, which I am sure would be categorised as a good thing to have. I had two Ryvita, which I believe are also quite good for one; they certainly look like they do the trick, whatever the trick might be. I had a plum, which I was assured by Gladys was a Worcestershire plum, which will please my hon. Friend the Member for Mid Worcestershire. It is all going well so far. I had a cube of delicious west country cheddar. Despite what the wretched “Eatwell Guide” says, we know that dairy products are very good for our diet and that we need dairy, so that was quite healthy.
I am just checking that the hon. Gentleman knows that his contribution will be on the record. I, too, had a lovely, delicious lunch in the Tea Room, but I am mindful that at our workplace we have high quality, nutritious food that is—people forget this—subsidised.
In the Minister’s desire to resist our amendment, he keeps referring to the clause, saying that he could do this and it is possible to do that already, and therefore our amendment is not necessary. He does not seem to want to have his boss’s hands tied—his boss to be told that he ought to do something or that he needs to do something. I just want to know why that is.
As a Government, we have set out our approach and what we intend to do with these powers. We have already published some policy papers alongside this Bill, which address many of those issues. The Secretary of State has talked about public access to the countryside and the role of farms in educating children, so we have set out clearly in the policy documents that accompany the Bill what we intend to do with these powers. Come the next election, I am sure that the Opposition will have manifesto commitments that will set out their approach and what they intend to do with the powers.
Another issue was raised by a number of hon. Members: that, fundamentally, the decisions about public health and healthy eating are very much around consumer understanding, consumer knowledge and consumer choice. That is why Public Health England has the “Eatwell” plate that it promotes. We have obviously already implemented the first chapter of the childhood obesity plan. We have introduced a levy on sugary soft drinks. We are currently working on the sort of second chapter of the childhood obesity plan.
We take the issue very seriously. Work on it is led by the Department of Health; it is very high up on that Department’s agenda. It is for the Department of Health to lead on and for us to support, and it goes outside the scope of this particular Bill, which is very much about schemes to support farming, the farmed landscape and our environment.
I will give a final example about sugar, which was raised by some Members. When quotas on sugar beet production were removed, some people said, “Shouldn’t we keep sugar beet quotas? That would be a way of restricting the growing of things that we think are bad for public health.” However, the reality is that the most powerful thing was the introduction of a levy on soft drinks; the value of the sugar that goes into a soft drink is actually tiny, and messing around with the price of sugar is not what delivers the outcome. What delivers the outcome is a levy on sugary drinks that drives policies of reformulation, and that is why the levy has been a success.
We know that some of these measures to try to mess with the supply side of the chain are actually blunt instruments when it comes to delivering public health outcomes.
To start with, I declare an interest: my wife has a stall on Stroud farmers market every fortnight. Please come along to see the wonderful wares that she sells. I had to get that on the record.
This has been an interesting and wide-ranging debate. Clearly, we are not going to come to a meeting of minds, but the issue will come back. I keep reiterating the fact that the White Paper, “Health and Harmony”, and the issue of public health which it identified as a crucial element in the way in which the food chain functions in an Agriculture Bill, are not going to go away. It may be that this is not the time to force a Division. I make that clear, but we make no apology for saying that we will come back on this because it is important that we understand that people out there may not understand the legislative process but they understand what they think should be the elements of what we do for the future of the policy.
I hear what my hon. Friend the Member for Bristol East says on the food strategy. It would be helpful if the Government were clear on when it comes forward, as it should be with the environment Bill, because these are interrelated. This is the problem with legislation. We only have one side of the coin, when we need both sides to make sense of the totality of the Government’s approach.
It is important that somehow health is in the Bill and I hope the Minister will reflect on this. Public health matters because what people eat depends entirely on their access to food and its availability and what they can afford. It is also to do with the fact that to some extent we have an influence, through production and distribution.
I hope the Minister has listened to the debate. We will not push the matter to a Division at this time, but it will come back because people feel very strongly about it, whether it concerns food poverty, or purely obesity and diabetes, or the reality of how food is increasingly the reason people’s life expectancy is determined. I understand what the Minister has said and I know there are lots of contingent points in his argument. However, I hope we can extract that and at a future time clarify where public health is in relation to the Bill. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
I beg to move amendment 74, in clause 1, page 2, line 3, at end insert—
‘(1A) No financial assistance may be given by the Secretary of State in relation to the purpose under subsection (1)(f) unless the practice for which financial assistance is to be given pays full regard to the welfare requirements of animals as sentient beings.”
This amendment would ensure that any financial assistance provided in relation to ‘the health and welfare of livestock’ purpose in Clause 1 recognises the welfare requirements of animals as sentient beings.
The Chair
With this it will be convenient to discuss the following:
Amendment 75, in clause 1, page 2, line 3, at end insert—
‘(1A) No financial assistance may be given by the Secretary of State in relation to the purpose under subsection (1)(e) unless the practice for which financial assistance is to be given complies with—
(a) any part of retained EU law (within the meaning of section 6 of the European Union (Withdrawal) Act 2018) relating to the protection of the environment which has not ceased to have effect as a result of any agreement between the UK and the European Union setting the terms of the UK’s withdrawal from the European Union, and
(b) any standards which were enforceable by an EU entity or a public authority anywhere in the UK before exit day, including principles contained in Article 191 of TFEU, and which will be enforceable by an entity or public authority in England after exit day.
(c) the principles contained in Article 191 of TFEU, for the purposes of this subsection, are—
(i) the precautionary principle as it relates to the environment,
(ii) the principle that preventive action should be taken to avert environmental damage,
(iii) the principle that environmental damage should as a priority be rectified at source, and
(iv) the principle that the polluter should pay.”
This amendment would ensure that any financial assistance provided in relation to ‘environmental hazards’ would ensure that environmental principles continue to apply in the UK after exit day.
Amendment 71, in clause 1, page 2, line 18, at end insert—
‘(5) Financial assistance under subsection (1) for protecting or improving the welfare of livestock shall only be given to farmers who have—
(a) demonstrated that their livestock welfare practice meets or exceeds the higher animal welfare standard specified by the Secretary of State for the welfare of livestock, or
(b) given, to the satisfaction of the Secretary of State, an undertaking to achieve the higher animal welfare standard specified by the Secretary of State for the welfare of livestock.
(6) Any standard specified by the Secretary of State for the purposes of subsection (5) must set standards that are higher than those required by legislation governing the welfare of livestock.”
This amendment would ensure that public money is only be used to support genuinely high standards of animal welfare. The Government has confirmed it will define a ‘higher animal welfare standard’ by 2020.
Mr Wilson, it is a privilege to serve under your chairmanship as your constituency neighbour. I know that you have many farmers in your constituency so I hope that you are finding our deliberations interesting and stimulating.
I have particularly enjoyed the contributions of the hon. Member for North Dorset. He has made insightful remarks on amendments 44 and 45. However, I take issue with him when he talks about a rural-urban split between our parties; that is not something that I recognise. Part of our reason for tabling many of these amendments, including the ones to which I am about to speak, is that we want to future-proof this legislation. We want to make sure that the outcomes that we probably all desire are more assured, that we can be more confident and, more importantly, that farmers and those involved in agriculture can have more certainty about what the future might mean for them. It is important that we get this right.
It has been said to me several times that the Bill is a huge opportunity for the sector and I agree. This is the first time for many years that the UK has had the opportunity to decide precisely how it wants to support farming, food producers and those involved with caring for our landscape. We need to take this opportunity seriously and grab it with both hands. I know that many interested parties are watching carefully what we say and the tone in which we say it—and also what it is that finds its way into the Bill. It is no good to the sector to hear warm words from Ministers and be given hints at possible future decisions.
Things laid out in consultation papers are very interesting, but they do not provide the certainty that is going to be needed. Until now, support for farming has come from obligations that we have had as a member of the European Union, which have been very clear and long term, though imperfect in very many ways—I would not dare to argue. Those obligations will now become discretionary, to a certain extent, and it is possible that at the next general election, whenever that may be, there will need to be a chapter in every one of our manifestos about what we think we ought to do to support farmers and agriculture. It would be helpful if we had a clearer framework, which could be laid out in the Bill and is currently lacking, within which those policy decisions and priorities could be placed. Unless we do that farmers are going to be left in an uncertain position, subject to the whims and competing priorities of different political parties—and, perhaps, pressures from minority parties. That is not a secure framework within which to proceed.
I am not a Department for Environment, Food and Rural Affairs farming agricultural specialist, as the Committee will know. I am here because I have been involved with our Brexit team. I have been asked not to bang on too much about retained EU law and that side of things in my contribution. I am also mindful of the fact that if we maintain the pace that we have achieved so far in our considerations, we will actually conclude in the first week in April, and given that the purpose of the Bill is to prepare us for our departure from the EU, that would be far from satisfactory; so I will try to get on with things.
As well as speaking to amendments 74 and 75, I wish to speak in support of amendment 71, tabled by my hon. Friend the Member for Bristol East. I must say that since I was elected in 2010 I have been inspired and encouraged by the approach she takes to many of these issues, particularly food, reducing waste and the availability of quality food. She has an incredibly impressive track record on those issues and it is great that she is here. I hope the Government will benefit from her observations as we proceed with the Bill.
The hon. Lady is making some very good points. Does she agree that on animal welfare, it was the European Union that was holding us back, and when we legislated on veal crates, dry sow stalls or battery cages it was the Europeans who prevented us from blocking goods coming into the UK that were not produced to the same high standards as here? Indeed, when live sheep exports were going to be blocked it was the EU single market rules that meant we could not do that.
The right hon. Gentleman is right—we are world leaders, and we are very proud of that. What I am trying to achieve with these amendments is that we maintain that position. I will go on to explain why later, but it is not difficult to imagine a future Government, under pressure perhaps to secure trade deals, feeling pressure to diminish our world-leading standards. None of us here today would want that to happen, but an assurance from a Minister in Committee or even at the Dispatch Box has nothing like the same weight as something written into our law. That is the issue; it is about maintaining the position that the right hon. Gentleman quite rightly highlights.
To explain this simply, rather than banging on about retained EU law, once the UK leaves the EU we will no longer be subject to EU law. As many of our laws and, importantly, the principles that underpin them are or have been previously held within EU law, the UK now can decide which EU laws it wants to adopt fully into UK legislation. EU laws on animal sentience, environmental standards and animal welfare standards are among the laws that have not been adequately taken back by the UK; I expect the Minister is thinking that, and it was indicated when we had the European Union (Withdrawal) Act 2018 as it went through the House of Commons. I say “adequately” because they have been transferred to some extent and I understand that, but the status of the laws now means that they are too easily amendable and do not provide the same safeguards as primary legislation does, or as they would if they were amendments that had been put into this Bill.
It would be a mistake on the part of the Government and Parliament to allow that situation to continue. We could take this opportunity now. It was hinted that the Government would do this when they could, and they could be doing it now. Why are the Government choosing not to take this opportunity at this stage?
My hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) made a good speech on environmental standards when we debated the EU (Withdrawal) Bill in Committee of the whole House. Several of my hon. Friends in this Committee contributed to that debate, and Members on both sides were concerned about the issue—I do not know whether the Minister remembers this. We are trying to ensure that the environmental principles set out in article 191 of the Treaty on the Functioning of the European Union are enshrined in our law. These are the precautionary principle in relation to the environment, the principle that preventive action should be taken to avert environmental damage, the principle that environmental damage should as a priority be rectified at source, and the “polluter pays” principle. We feel—I think most of us here would agree—that these need to continue to be recognised and applied after exit day.
It is not unique to EU law to have these principles enshrined in this way as they are enshrined in law in other policy areas, and there is no good reason why these should not be included in this Bill. The principles are not there to make us feel good so that we can look to them and say, “We put this into law and that shows what a great country we are,” although it does do that. They have three key roles: they are an aid to the interpretation of the law, they guide future decision-making, and they are a basis for legal challenge in court. The EU (Withdrawal) Act did not allow us to replicate the legal certainty that we currently have. At the moment, we have that legal certainty, but when we leave the EU at the end of March that legal certainty—depending on the deal that has been achieved—will no longer be in place. As my hon. Friend said when we debated the Act, we need this
“to be effective custodians of the environment and to be world leaders when it comes to environmental standards.”—[Official Report, 15 November 2017; Vol. 631, c. 495.]
It is very important that we embed the principles in the way our policy operates. I have to say that to his credit the Secretary of State for Environment, Food and Rural Affairs has recognised this, but the Government continue to argue that environmental principles are interpretive principles, and that as such they should not form part of the law itself.
I do not think that they are simply guidance. The environmental protection requirements should be integrated into the definition and implementation of our policies and activities, in particular with a view to promoting sustainable development. They are a vital aid to understanding the role and function of existing legislation, as well as being, as the Secretary of State said, an interpretive tool for decision makers and, if necessary, the courts.
There is also an important aspect to all of this around devolution. The principles provide the beginnings of a framework within which the devolved nations, as well as England, can operate. There is significant anxiety, which we may get on to in later clauses, about how exactly support for farming and agriculture might work in the future when we think about the Welsh Government, the Northern Ireland Assembly or the Scottish Government’s desire to do things—as they have done previously, to be fair—slightly differently. Why would they not want to do that? There needs to be a shared and agreed framework within which that can happen.
Another point is that the UK’s duty to comply with the environmental principles does not end when we leave the EU, because they are contained in other treaties that have nothing to do with our membership of the European Union. The way we comply with those treaties needs to be somewhere in domestic law. I will listen to what the Minister says, but there is a risk that in the future that it will not. That is why we think it is right that these principles be incorporated into this Bill. There are clear examples of other laws where this kind of approach has been taken. The Health and Safety at Work etc. Act 1974 talks about it being
“the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees.”
The Countryside Act 1968 confers functions on an agency for it to exercise for the
“conservation and enhancement of the natural beauty and amenity of the countryside.”
It is not unusual to have this approach.
The environmental principles set out in article 191 of the treaty form an essential component of environmental law. If the Government’s stated aim of equivalence on day one of Brexit is to be achieved, these principles need to be part of domestic law on day one and the public should be able to rely on them. The courts should be able to apply them and public bodies need to know that they have been following them. I appreciate that we are talking about transitional arrangements, but that only makes it all the more uncertain for people and shows all the more need for clarity. In the absence of any of the other promised legislation so far—we are anticipating several Bills that are yet to materialise—this has been our only opportunity to get the principles in a Bill so that they can be enshrined in UK law.
Amendments 74 and 75 would impose duties on the Secretary of State. We are going to come back to this again and again: we are not satisfied that powers are sufficient to provide us with the confidence we need to give this Bill support. What we want are duties. The principles that safeguard the environment ought to inform the way taxpayers’ money is spent. The way the public view all this in the future is going to change and the Government need to be ready for that. They have had a buffer in the EU until now, and much as members of the public might shake their heads or roll their eyes at some support for farmers, they are one step removed. That is not going to be the case in future. People are going to turn up at Members’ surgeries saying, “I am not happy with the way my taxpayers’ money is being spent” if they feel it is being distributed for things that they do not believe are appropriate. Having a legal framework underpinned by the principles we are proposing would provide some confidence and a safeguard for the public. That argument has not yet surfaced sufficiently, but we are going to see a very different tone to the way these sorts of issues are debated in the future.
That is an incredibly important point and I think farmers are right to pay as much, if not more, attention to those issues than even to the Bill. However, does the hon. Lady accept, as I do, the statement made in incredibly good faith the other week by the Secretary of State for International Trade that the fear and anxiety she is talking about will not be part of this—that we will not be lowering our food hygiene or animal welfare standards as a way of trying to get trade deals signed? I thought that was very clear. It has been echoed by the Prime Minister and I think we should take them at their word.
It is welcome, but I think that Members have to understand that that is not sufficient. Welcome though it is, it is not enough to reassure us, because the Secretary of State is not accountable for that. There is no way of holding a Member to a statement like that, unfortunately.
As a former shipping Minister, I reassure the hon. Lady that I have been to Felixstowe and seen those containers coming in, including fridge boxes containing that sort of produce. There is already very detailed scrutiny of what is in those boxes. Tests are carried out particularly on pesticide residues, mycotoxins or any other health hazards that the UK might be exposed to. That is already in place for imports from third countries.
I note that that is because we are in a customs union. That is my point: we have those high standards now, and I want to ensure that we have them in the future, and I do not see any way of doing it other than putting it on the face of a Bill—I accept that it does not need to be this Bill, but we need to know that this will happen.
On a point of clarity, my right hon. Friend the Member for Scarborough and Whitby is right that we have border inspection posts around the UK. They are a port of entry currently for the EU, and when we leave the EU they will still be a port of entry, with all the broader inspection facilities we need, for countries outside the EU.
That very much depends on the terms on which we leave the EU. Whatever those terms are we need to be absolutely clear about our standards on animal welfare, food safety and all the rest of it. If we are not, there is scope for these very high standards of which we are all proud to be watered down in some way. That is the sole motivation behind the amendment. It is not intended to ridicule the Government, or to try to show that we care more about animals than Government Members do or any of that. It is about making sure that, in the future, the UK maintains its position as a world leader on these issues.
My hon. Friend will remember my interchange with Jason Feeney of the Food Standards Agency when I pressed him on the degree to which the FSA looks at food quality. He argued that it mainly looks at hygiene and safety. However, that clearly shows the organisational changes that will be required, because somebody has to look at quality, and if it is not the FSA, some other agency will have to be invented to do so. At the moment, that responsibility is subsumed within the European Food Safety Authority.
That is another example of how difficult this issue is and of the work that will be involved in making sure that we keep current standards as they are, or raise them higher than they are today. There is absolutely nothing in the Bill that enables us to be confident of that, which is why we encourage the Government to accept our amendments, or if they will not, to bring forward measures that they find acceptable.
This is important. It is about the reputation of our country around the world. The people with whom we seek to trade in the future will be mindful of the legal framework in which our food is produced. It will be a lost opportunity should the Government not agree to bring something forward that will provide clarity for our producers.
Is it not also the case that, if such a measure were in the Bill, in any future trade negotiations both sides will understand our bottom line and will not attempt to change it, because of the significant challenges in removing something from an Act? Indeed, it would empower the Secretary of State to build on the assurances that have been given.
That is right. I am not cynical, but I hope that that is not part of the motivation for not including these principles in the Bill. However reassuring the Minister undoubtedly is, we are not only legislating for today. This legislation has to stand the test of time, and it has to provide the protections that we think we need for the future. I hope my hon. Friend is wrong, and that that is not at the back of the Government’s mind, but we are being asked to take an awful lot on trust, which Opposition Members are not generally inclined to do.
Another useful contribution in evidence came from the chief executive of the Tenant Farmers Association, George Dunn. He said that, if we set domestic environmental and animal welfare standards for food production and do not allow farmers to invest in the necessary fixed equipment required to produce those standards, we are not supporting them in the supply chain to ensure that they get adequate returns for those standards. He also asked how sucking in stuff from wherever, produced to whatever standards that we are unable to attribute, creates food security for our nation, and said that we will simply be exporting our environmental and animal welfare problems abroad. I think he speaks for many of the farmers I have spoken to. That is not something that any of us would want. The best way to prevent that from happening is to put these measures into the Bill—or, if not this Bill, a different Bill.
Minette Batters spoke brilliantly about the politicisation of support for agriculture in the future, and how it will be different. She pleaded for spending not to be politicised, but with the best will in the world, it will be, because spending on support for our agriculture will be in direct competition with spending on the health service, policing and pensions. When the Chancellor delivers his Budget in years to come, he will have to say what he will do for farmers and for agriculture that year. There is a real danger of instability and lack of confidence. The logical response from investors would be to hold back and not invest long term in their own farms because they risk making a long-term investment and, with a change of Government, the support they had anticipated might not be in place. That is not something that any of us would wish to see. This is the best Bill for including some legal safeguards to prevent that from happening.
Minette Batters says that this will not work if it gets politicised and that we need a long-term approach, with cross-party support for the ambition. She says that otherwise—I think she is understating this—there will be a lot of challenges ahead. We can bet there will be a lot of challenges ahead. If I were a farmer, I would want far more clarity on what was expected. Having been told there was an Agriculture Bill, I would expect there to be clarity for me as a producer.
I noticed in the “Health and Harmony” document that the Government talk about the regulatory framework within which they will inspect and maintain standards around the Government’s policy. That is another area of concern. We would probably feel a lot better about it if we had that kind of legal certainty in the Bill.
Unless the Bill is substantially more explicit than the current rather loose and discretionary “it would be nice to do this if we want to” powers, we will leave farmers at considerable risk. They absolutely need to know what is needed to comply. How compliance is monitored will also matter. The “Health and Harmony” document rightly says:
“Farmed animals are an integral part of our countryside. We have a responsibility to maintain their health and welfare”.
Yes, that is so. It also says:
“Excellent standards of animal health can reduce reliance on veterinary medicines”.
To be fair to David Cameron, although I am not sure why I would be, he did talk about antibiotic use and prioritised getting to grips with that, which is a good thing. The “Health and Harmony” document says that at the moment there is a strong regulatory framework in place that ensures that health and welfare standards are maintained.
It is troubling to see other points in the same document. I can see why this is the Government’s mood but, when it comes to animal welfare and environmental standards, we ought to be doing much better. That, combined with the lack of legal certainty in the Bill, causes me anxiety. On page 49, “Health and Harmony” mentions
“seeing how inspections can be removed, reduced or improved to lessen the burden on farmers while maintaining and enhancing our animal, environmental and plant health standards”.
We would all love to maintain the same standards, with no legal framework and light-touch regulation. That would be fantastic—I want to live in that world, but I just do not think that we do. The document says:
“We also have some of the highest animal welfare standards in the world: after leaving the EU we should not only maintain but strengthen those standards.”
So, where is that ambition in the Bill? Everybody on the Opposition side has it, as I am sure everybody on the Government side does, but where is it in the Bill? It is okay to say that we all want to be nice people, look after our animals and have a lovely countryside—of course we do—but the Government need to say how they are going to do that and exactly what they will do, as opposed to what they could do if they felt like it. We can do much better than that for our food producers.
Does the hon. Lady accept that despite the fact that European treaties contain that recognition, we still see foie gras production in France and bullfighting, so it would be no protection against that sort of thing?
I do, to an extent, but the fact is that we have had that provision up to now and we want to keep it in the future. It is the right thing to do and it provides some protection. How we implement it as part of our UK law is entirely up to us—I think that was the point of the exercise for some Conservative Members, was it not? I look forward to hearing from hon. Members about how they would seek to make the best use of the opportunity.
The hon. Lady will be aware that the RSPCA is the oldest animal welfare charity in the world. Although I take her point that the European Union has been incredibly helpful, does she not share my confidence that we in the UK—the Government, the Opposition and the populace at large—are fully alert to those important issues and will do what is right? As somebody who voted remain, I do not think that we need another group of people to tell us how important the issue is or to set our standards. We can do that ourselves, and we will get it right.
Why the reluctance to have this provision in the Bill, if we are all so clear, certain and confident about it? I do not see the problem. It is important because, in a sense, it would act as an instruction to future Governments when they create legislation. It has previously been, and ought to be, the basis of law-making on animal welfare. I accept that there has been a lot of noise and confusion around the debate, and I hope that we do not get sucked into that kind of confusion as we discuss this topic.
Just as an example, one Tory MP—I hope it was not the hon. Member for North Dorset—said:
“This government, and in fact all governments, are deeply committed to continuing to protect animals as sentient beings. That law is already written into our own law.”
But it is not written into our own law—that is the point—and it would be so much better if it were. The reason we are bothering with this Committee is to make the Bill better. I do not think any Minister who has served on a Committee has ever said, “My Bill is perfect. Don’t bother discussing it; let’s all go home.” The idea is that we improve the Bill as we go forward, and I notice that the Government already have many amendments, so they are obviously open to improving the Bill. This amendment would be one way to make the Bill better.
How people feel about this topic, I suppose, depends on whether they think it is important that animal sentience should be specifically recognised, or that the law as it stands goes far enough. There might be differing views on that, but the Opposition think that animal sentience needs to be recognised in law. If the Government wanted to bring forward their own wording on this—I expect the Minister will tell me why mine is deficient any minute now—we would be interested in working with them on it, because this issue matters to so many people around the country that we need to be constructive about it. Should the Government want to do the right thing, we will work with them. I will leave it there for now, and listen to what the Minister has to say before I speak further.
The hon. Member for Darlington has made some well-argued remarks, and I am confident that the Minister will be able to reassure her on a number of the points that she made. We are all on the same page.
I will briefly concentrate on one aspect. Who could argue with the four principles in amendment 75? My slight problem is that, having served on the European Parliament’s Committee on the Environment, Public Health and Food Safety for five years—and being partly to blame for much of this legislation, no doubt—the precautionary principle looks, on the face of it, like a good principle. In practice, sadly, it is often misused. My experience was that increasingly, it was being used as a fall-back to ban some activity or substance for which there was not any scientific evidence to justify a ban, or insufficient scientific evidence. For example, if I were to use the precautionary principle when I decide whether to cycle home on my bicycle tonight, I would almost certainly decide not to do so, because I could not prove beyond any reasonable doubt that I would not be knocked off or fall off, and end up in St Thomas’s hospital or worse. Sadly, that type of approach is used all too often.
I can give you an example from my time in the European Parliament, to do with the group of chemicals known as phthalates. They are used to soften PVC—the sort of plastic that is used in babies’ dummies, feeding bottle teats, and many medical devices. Phthalates are chemicals that have effects on human health; they are endocrine disrupters that affect how hormones in the body work. Some sought to ban the use of phthalates as a PVC softener in such products, but the problem was that the medical industry said, “If we cannot use those plastics, the devices that we will have to use will not be as good for operations”—those devices include complex catheters that are inserted during more complex operations. That was an area in which we needed to look at the risks and benefits in the round, rather than issuing a ban based on some risk that might have been unquantifiable, and certainly was not scientifically proven.
The most recent case that shows us why, when we move forward with our own legislation, we need something better than the precautionary principle—something that is much more scientifically based and that can, if necessary, be taken to judicial review and proved one way or another—is the prevention of the introduction of genetically modified crops across the European Union. Many farmers and enlightened environmentalists would have liked such crops to be introduced, to reduce our reliance on pesticides and fertilisers and to make food more nutritious and safer. That is how those crops are used around the world, but we cannot do so in the UK. The precautionary principle has been used to block such technologies, and that was a bad use of that principle.
Rather than accepting amendment 75, we need—now that we can, as we have heard, make our own legislation—something that does the same thing as the precautionary principle but in a more effective way, based on science and not, as is sadly often the case, on prejudice and misinformation.
I will begin with amendment 75, as the other two amendment both pertain to animal welfare. This amendment effectively says that people have to abide by retained EU law before they can be eligible for any assistance. Retained EU law is coming across through the European Union (Withdrawal) Act 2018. It will apply to everyone, whether or not they are in a scheme. We do not believe the amendment adds anything or is necessary, as retained EU law will become UK law and will be enforceable as such to everyone. The important thing about the new schemes from our point of view are the conditions attached to them. We deal with that very differently, in clause 3, which we will no doubt debate later and which has all sorts of provisions for checking, enforcing and monitoring. It requires provisions for the keeping of records and allows us to impose penalties, establish appeals processes and refer powers of entry, for instance. Clause 3 sets out clear enforcement powers and the ability to set conditions on access to such schemes, which in our view is the right way to approach this.
There is also a technical problem with amendment 75. The hon. Member for Bristol East at least said that everybody should abide by the legislative baseline, whether that be retained EU law or any other domestic legislation. The problem I have with the amendment is that it treats retained EU law as if it were the only law that matters. It is mute on other national law. If we were to require people to abide by the law—which they might believe they would be required to do anyway—why would we require them to abide only by retained EU law, rather than any other class of law? To me, that does not make much sense.
We do not want it to be retained EU law; we want it to be primary UK law. That is our point, because we think that has a different status to retained EU law.
The provisions that I am reading are very much around EU law and retained EU law, but I take the hon. Lady’s point that she may have intended the measure to be broader.
There is a third point, however. We are clear that we accept some of these principles. We will provide for a new environmental body to police them. We have already said that we are committed to those principles coming across. There is a difficulty, however, in the practice of a scheme where financial incentives are being paid. It is not always black and white. For instance, the “polluter pays” principle sounds great in theory, but what if there is a diffuse pollution incident somewhere in a water catchment that might involve small contributions from a number of farms that are difficult to locate? It is not always easy to just say, “We need regulation,” or, “We need enforcement,” on this farm or that farm.
In recent years we have successfully paid farmers to support them in investing to improve slurry infrastructure. We have had a successful scheme in the past two years to pay farmers to put lids on slurry stores, so that they can reduce ammonia emissions, for instance. If we are serious about tackling complex environmental issues such as diffuse pollution, we have to be willing to venture beyond what can be achieved with a blunt regulatory instrument and instead be willing to have financial incentives, rewards and grants to support good practice. A requirement to abide by the “polluter pays” principle will often be used, as in this case, by people who want to sit on their hands and not spend money. If we are serious about doing payment for public goods properly, we must be willing to exercise judgment and to support schemes that may fall into the grey area between what would normally be covered by regulation and what would be covered by an environmental purpose.
Amendment 74 relates to animal sentience, on which we have already published draft legislation. The Government are absolutely committed to making the necessary changes to UK law to ensure that animal sentience is recognised. This country has always been a leader in the field. In 1875, we were the first country in the world to pass legislation to regulate slaughterhouses. The Protection of Animals Act followed in 1911, and in 1933 we updated a lot of our regulation, particularly of slaughterhouses. The Animal Welfare Act 2006 recognises animal sentience. We would never have passed any of that legislation if we did not believe that animals were sentient beings. That is beyond question; both sides of the House and all Governments have believed it for at least 140 years. We are committed to introducing a Bill to recognise animal sentience.
My right hon. Friend makes an important point. I am conscious that on animal welfare and in the agri-environment schemes, a lot of farmers have already done a huge amount of work, and it is important to recognise that and to continue to reward them for that. The baseline, such as it is, should be anchored somewhere around the regulatory baseline. Even then, I do not think we should have a hard and fast rule, for the reasons I have explained on issues such as investment in slurry management. In this innovative new field of animal welfare, there are grey areas, and it is not always right to have a hard and fast rule.
The hon. Member for Bristol East mentioned the issue of cross-compliance. The conditionality on new schemes is provided for in clause 3. If somebody enters a new scheme and is in breach of it in some way, there are provisions for financial penalties and for the powers that we would need to be able to do that.
Having been farming Minister for five years, and having wrestled with cross-compliance, I am not a great fan of how it works in practice. It is a rather dysfunctional system. There is literally nothing—bar one thing—in cross-compliance that is not already in our domestic law. All the requirements on ear tagging, animal health and animal welfare, or the issues around TB testing and good environmental condition for land, are already requirements in our national law. All that cross-compliance really gives us is a sort of easy and rather unjust way to claw penalties out of farmers without really giving them a chance for a fair hearing in court. In my view, it is not a very satisfactory system. We would need some sort of system of fixed penalty notices in future, so that there are ready remedies for minor breaches, but we could design something far better. Cross-compliance will remain in the legacy scheme that we will come on to debate, but we will have the opportunity to modify and improve it and to remove some of the rather unnecessary administrative burdens that can get in the way.
I hope that I have managed to persuade hon. Members that the Government remain absolutely committed to amendment 74 animal sentience, but we believe it should be in another Bill. We have already published draft legislation. On amendment 75, retained EU law will already be binding on anyone, whether or not they are in a scheme. I hope that the hon. Member for Bristol East will not press amendment 71, as it would be counterproductive to the cause that I know she believes in very strongly.
I am not surprised by any of the Minister’s comments. His attempt to reassure the Committee on EU retained law and SIs was not particularly effective. As we said at great length during the passage of the withdrawal Act, the ability to amend the Act is of deep concern to us. We think it is far better that the provisions should be in the Bill now, so that everyone can see exactly where we are. We are not happy with the approach that the Government have taken, and not just in these areas but in many others.
The Minister invited me to look to clause 3 for reassurance. Again, we come back to the powers that have been given to the Secretary of State, which are so wide-ranging. Although there are suggestions in the Bill about what those powers may be used for, the lack of precision is astonishing. Clause 3(2) states that “under subsection (1)” the Secretary of State
“may (among other things) include provision”.
It is extraordinary that the Government are attempting to proceed in this manner and expect the Opposition to go along with it. We are just not going to do that.
I might not be minded to press the amendment to a Division today, but I do not want the Committee to interpret that as demonstrating any kind of satisfaction on our part; it absolutely does not. We intend to return to these issues, which is one of the reasons why we will not press the amendment today. That might increase our chances of being able to return to the issues, which are fundamental to why we think the Bill is so flawed. I take the point about linking the issues to financial assistance. There might be something in that, although taxpayers want to know the principles by which their hard-earned cash will be spent in this area. I do not think that the Minister has responded adequately to our concerns. I expect that in the other place, and on Report, we will go over those issues again.
As for amendment 74 and the promised new Bill, we want and need to see the Bill, not just assurances that it is on its way. The Secretary of State said, “I want this to happen because I too am a sentient being.”
Yes, there are degrees of sentience. It is not good enough, and there is no justification for not having introduced the Bill already. I am not going to divide the Committee, because we are pressed for time, but I expect that the issue will be debated again as the Bill proceeds. I want to restate our dissatisfaction with the whole approach to the Bill. It is not good enough, and the Government could have done an awful lot better. However, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
I beg to move amendment 52, in clause 1, page 2, line 4, leave out subsection (2), and insert—
“(2) The Secretary of State may also give financial assistance for or in connection with any of the following purposes—
(a) starting, or improving the productivity of, an agricultural, horticultural or forestry activity;
(b) supporting businesses or communities in rural areas; and
(c) supporting persons who are involved in the production, processing, marketing or distribution of products deriving from an agricultural, horticultural or forestry activity.”
This amendment would extend to England the powers provided to Welsh Ministers in Schedule 3 paragraph 1(2)(a) and (c).
I shall try to be a bit briefer on this amendment, partly because the hon. Member for Ludlow has three amendments to our one. I make no apology for the fact that it is more of a probing amendment. There has been some discussion about the relationship between supporting environmental goods and what remains of helping farmers or people who work the land. Paragraph (b) is quite important to me, having done quite a lot of work on rural policy over the years. We have not really spent much time looking at how rural fits alongside agriculture.
One of my worries about the legislation is the way we are changing from the common agricultural policy, of which, as the Minister rightly said, I was a critic. There were many things wrong with it, but one of its strengths was pillar 2, and the way in which pillar 2 was able to enhance and, dare I say it, rebuild rural communities. One of the problems with the Bill is that rural communities hardly seem to feature at all. Yet the strength of agriculture is in the context of the rural communities in which farmers and others live. It is quite important that we tease out from the Government how they see pillar 2 being reframed in a British context.
I would argue from the outset that the previous Labour Government, the coalition Government and this Government have not done enough to support rural communities. Too often money was forthcoming only in a grudging manner. We frequently failed to match-fund the moneys that were available through pillar 2, which meant that very often schemes did not go forward. Part of my reason for tabling the amendment was to raise the issue of rural communities, and to say that hopefully there will be opportunities for us to put something more definite in the Bill to say that we really want to enshrine pillar 2 in the legislation. Otherwise, all will be lost. There is no other opportunity; there is no forthcoming rural Bill. We may have a sentience Bill, we may have a sentencing Bill, and we may have a Bill to ban animals in circuses.
We may; we might; we must—some time, over the rainbow. Lots of bits of legislation are possible, but they are not necessarily going to be introduced very quickly, so rural affairs must feature.
The amendment is more of a probing amendment. As we move towards environmental support payments, we must consider what that means for farmers. I have always been a doughty champion of smaller farms and tenant farms. Given what my hon. Friend the Member for Darlington has said, I worry that there are holes in the legislation, with regard to how it will actually work. In the evidence session I referred to the regulatory underpinning, which is important but, as yet, not at all clear. That is why we wanted evidence from the Rural Payments Agency, despite all its failings, and from the Groceries Code Adjudicator, and indeed from Dame Glenys Stacey, to know what the format is. We have had her interim report but no final report yet on how the regulatory regime will operate for farmers. That is important because, although we are debating primary legislation, that is what will underpin it. Rural communities are important and we need to know what the Government will say about that.
In terms of the national interest and social justice, we must be able to feed ourselves. We feel strongly about food security, and I have argued for that. It has not really featured in the past decade, although it did in the previous one—it drove agricultural policy. It was one of the reasons we changed at European level from the previous regime. We strongly felt that it was better to pay farmers—in this case, landowners—and that may be where we dug ourselves into a problem. I always argued that there should be a de minimis and a de maximus payment structure. Colleagues did not necessarily agree with that, but that is why we have ended up with some of the problems we have had in respect of the area payment scheme. We need to look at how we can encourage our farmers to produce more of their own produce, and that is a reason for probing this. It is about good-quality, healthy food—we have had that debate already. We need to look at how that is coming forward.
That all sounds theoretical, and like good things for good people, but that is what we have committed ourselves to in the Welsh schedule, so they are getting this. We may well say, “Lucky old Wales” and feel disappointed that England does not have the same. It would be interesting to know how we will defend the interests of England. That point was made at great length at Second Reading by the hon. Member for Wokingham (John Redwood). Who speaks for England? Wales certainly has greater flexibility in how it can use its money in its schedule. I have said that it is likely that we will end up with four different agricultural systems—nuanced, but different. We must understand where England stands, particular in relation to Wales. Should Scotland and Northern Ireland come forward with the same proposals, they would need to be looked at. We must look at how payments will be allowed as well as for what, and to whom. That is why agriculture, horticulture and forestry are crucial in how we look at who gets the money and for what reason. That is about public interest, and it is about putting what we really want people to do on the face of the Bill.
It is a pleasure to serve under your chairship, Mr Wilson. I am pleased that this is a probing amendment because it is a good example of why the schedules relating to the devolved Administrations do not protect or guarantee respect for the devolved settlements. If accepted, it would surely restrict who the Welsh Government can pay out to. That point was ably made by the hon. Member for Ceredigion. It is a proposed imposition on the devolved Administrations that would restrict how they can spend their money. It does not even come from the Government; it comes from a group of—without being rude about it—random MPs.
I may have got the wrong end of the stick, but my impression, having raised this matter with the Welsh Government, is that they agreed to schedule 3.
The hon. Lady is referring to the schedule. It has not come from the Government; it has come from the Welsh Assembly.
Forgive me, but I am speaking about amendment 90, which makes it clear that it would impose financial restrictions on the schedule. I am objecting to it because, from the Scottish Government’s point of view, that is not desirable.
I note that paragraph (b) would allow payments to be made to landlords and others who have an interest in the land but do not actually produce anything, rather than farmers. That is certainly a concern. I feel strongly that these kinds of decisions should be made by the Ministers setting up the scheme, rather than by people in this room.
I do not agree. Subsection (2) is very clear. It gives us the power to
“give financial assistance for or in connection with the purpose of starting, or improving the productivity of, an agricultural, horticultural...activity.”
It could not be clearer. It gives us the power to invest in the way that I have described.
This is problematic. I do not think the Minister knows how to answer his own questions about how best to support farmers. Clause 2(2) says:
“Financial assistance may be given subject to such conditions as the Secretary of State considers appropriate.”
I do not know how much wider we could get, and my hon. Friend the Member for Ipswich is worried about its being too narrow. That is the problem with the Bill.
I do not accept that criticism of the Bill. We have discussed many times the romantic attachment of some hon. Members to the 1947 Act. Let me just read from it again. It describes Ministers being able to do things that they deem “expedient”. We have a concern about giving the Government and Ministers power to get things done, but that is what has been missing in our time in the European Union. We should embrace the fact that we are now able to get things done as a country.
My final point on food security is that, if we look at the evidence, the sectors that contribute the most to our self-sufficiency as a nation are the ones that are unsubsidised, not those that are subsidised. We are 96% self-sufficient in carrots, which is traditionally an unsubsidised sector for which the current single farm payment is irrelevant. We are 92% self-sufficient in cabbages and 95% self-sufficient in peas. We have seen a big increase of 15% in the production of vegetables since 2010 and a 50% increase in top fruit and soft fruit production. The unsubsidised sectors have been the most innovative and have done most to contribute to our self-sufficiency.
I turn to amendment 89, which is in the name of my hon. Friend the Member for Ludlow and is supported by my hon. Friend the Member for Gordon. It seeks to limit the eligibility for financial assistance across the board to people who are in farming or food production. I understand the intention behind the amendment. The concern, if I could caricature it, is that in future a Government may just give all the money to green non-governmental organisations, which will buy a large fleet of Land Rovers and employ a large army of regional officers to go around chivvying farmers to do things differently. That is not our intention at all.
We have been very clear that we envisage a future where there will be an environmental land management contract principally with the farmer or the landowner. There is a very important reason for that. We cannot deliver any of the public good benefits unless the landowner or the occupier of the land—the tenant—are fully on board and fully signed up to do so. That is why virtually every one of the paragraphs of clause 1(1) refer to the farmland or the farmed environment and managing land in such a way as to promote the environment. To do that, the landowner or the tenant has to be the main recipient of that funding and the person with whom we have the contractual arrangement.
What we do not want to do is rule out the scope for there to be, for instance, some lower level facilitation work to get regional level co-ordination, which a group such as the RSPB or the Wildlife Trusts might engage with. There could be a role to design schemes to have some facilitation funding, as we do now under the EU schemes, for some of those third-sector organisations. In some national parks or areas of outstanding natural beauty, we might find that there is a collective body that could do that in partnership with farmers.
While we cannot accept this particular amendment, I understand the concern of my hon. Friend the Member for Ludlow. With the policy papers that we have launched, I can reassure him that we absolutely intend that it will be farmers, landowners and tenants who receive the lion’s share of these funds. They might choose to subcontract certain responsibilities and tasks to third-sector organisations, but if we want to ensure that there is delivery, our relationship must be with that landowner or land occupier.
(7 years, 11 months ago)
Public Bill CommitteesI oppose amendment 72, not because I am against enhancing soil health in our country, but because I believe the amendment would act against some of our other objectives. As a farmer I manage soil, and as part of my agriculture degree I spent a year studying soil science. Although it is easy to define animal health—it is the absence of disease, or a state in which production from the animal is maximised—it is much more difficult to define soil health. As an intensive arable farmer, I know that the healthiest soil is the most productive soil. Therefore, levels of nutrients—nitrogen phosphate, potash and sulphur—should be optimised to produce optimal soil health. but we need other elements within the soil as well. The cation-exchange capacity must be optimised through the use of lime and other soil treatments so those nutrients are available. The soil also needs to have the correct flocculation status, so that nutrients and roots can travel through it and drainage is optimised.
It is easy to define what productive, healthy soil is, but for some of the objectives in the Bill we need less than optimal soil health status. For example, all farmers agree that the most optimal way to enhance soil health is to have drainage schemes in place, but we have other agri-environmental schemes to try to prevent flooding, such as flood plains and areas of reed beds. Innovative schemes are happening on the North Yorkshire moors above Pickering, where the soil health is not optimised because that land is flooded deliberately to enable the delivery of those schemes.
Similarly, the North Yorkshire moors are a valuable habitat. The land is moor land because the soil is particularly acid and the soil health is bad—bad for growing most things apart from heather. Measures that could be put in place to enhance soil health there could actually act against enhancing that particular environment. We need to look at how we help farmers to manage their farms across the board. Some of their land may well be managed in a way that optimises soil health and production, but elsewhere soil health should deliberately not be enhanced, to allow certain species and habitats to develop precisely because that soil is flooded, acidified or not optimised for production.
I observe that the amendment asks that health soil be included in a list of things to which the Secretary of State “may” give financial assistance, not “must”. The right hon. Gentleman would not need to worry so much if he accepted the amendment.
Yes, but we have recorded that it is the policy of the hon. Lady’s party to put “must” in the Bill, which will no doubt be introduced in the Lords.
The point I am trying to make is that it is very difficult to define enhanced soil health. Unlike animal health, where it is very easy to see whether an animal is healthy or not, there are a number of objectives, for example, looking at organic matter in the soil and the use of slurries.
Although many would wish to take measures to improve the organic matter in soils, there are downsides, particularly looking at nitrates. The Environmental Audit Committee, on which I sit, looked at nitrates in water and soils. Many of the problems with high levels of nitrates, which can lead to eutrophication in watercourses and the sea, in some cases, are due to high nutrient and nitrate levels being applied to the soil, which can be associated with organic fertilisers. My view is that this is an unnecessary amendment.
Soil health is best left to farmers. If we can create the situation where farmers manage their farms correctly, they will enhance soil health in those areas where they wish to maximise production but they might deliberately degrade soil health in order to encourage species that thrive in waterlogged, acidic and other soils. Although I can understand the motives behind the amendment, I do not believe it would achieve the intended objectives.
I am not completely convinced by the Minister’s response. Mitigating is about lessening the impact of climate change. It is not about preventing it. We are trying to reduce emissions and the impact on climate change of agriculture and horticulture. They are different things. It is not true that the only difference is the length of the sentence.
On the terminology, we are not talking about mitigating the consequences of climate change. The subsection is very clearly about mitigating climate change itself. Any action that is taken to reduce carbon emissions and the emission of other greenhouse gases—ammonia is a very important one in agriculture—would be mitigating climate change. The subsection also includes the phrase “adapting to climate change” in recognition of the fact that, as Gilles Deprez pointed out in the evidence session, we are already living with the consequences. For instance, we recognise that we tend to have more floods, so we may need schemes to manage the implications of that. “Mitigating climate change” means what it says. It can include any actions that reduce greenhouse gas emissions.
That is not right. Mitigating does not mean that. It means to lessen the severity or the impact of something. What the Minister is doing in the clause is very different to what we seek to achieve. The definition of “mitigating” matters.
(7 years, 11 months ago)
Public Bill CommitteesQ
Patrick Begg: I would say it is a very significant risk. You would find cross-sectoral agreement that more needs to be done—probably in the Trade Bill—around ensuring that imports do not undercut the environmental standards we already have and are talking about cementing for the future. Without that, it is a huge risk.
Martin Lines: Trade deals are going to be massive. We do not just want to have high standards here and export our environmental footprint; we want to be leading here, exporting those high standards, and buying produce from abroad that matches those high standards. There is a lot of concern around that.
Thomas Lancaster: I would agree, certainly on international trade, standards and imports. As Patrick says, we are speaking with one voice with the National Farmers Union and the Country Land and Business Association and other farming and food organisations on that point. In terms of UK co-operation, agriculture is a devolved policy, and it is right that individual devolved Administrations should have the flexibility to develop policies that are right for their country. We would like co-operation on issues such as how those policies are designed and how we can prevent market distortion. From our perspective, environmental challenges are transboundary—there are shared catchments that span borders within the UK—so how will we secure environmental outcomes across boundaries through future agriculture policy? That is a huge unanswered question.
Martin Lines: I would like to see the Government leading the way in procurement of their own food. Governments throughout the UK buy huge amounts of food. Where are you setting the higher standards in trying to procure that food locally and sustainably, and leading the way? That sets the direction for the rest of the public to follow.
Q
Patrick Begg: We live and breathe this every day. This is at the heart of what the National Trust does. It is always a balance, and there will always be trade-offs. There is no blanket policy that you can apply here, but I think we would all agree that more public access that allows people to get the spiritual and physical refreshment that our countryside offers is absolutely critical.
The Bill is incredibly welcome, in that one legitimate area for public investment in future will be increased public access. I could not agree more strongly with what has been done in the Bill on that. Sometimes we can find small examples of disturbance where people and wildlife do not match up very well, and think that it is a universal problem. I think it is not universal. Our experience is that there is a large amount of open countryside in which people can happily co-exist with wildlife. There will have to be some careful thought put into how we make sure that the interface between people and livestock works. Dogs and livestock can be problematic—let us be honest. Again, we have methods for dealing with that. There is public education. It is interesting that the countryside code has gone off the agenda and no longer gets talked about. That can be revitalised, and people can be made to feel engaged in their countryside and feel that they have a shared responsibility for what happens out there, not just as users, but as people invested in it.
Martin Lines: On public access, it is good for people’s health to get out into the countryside, but it needs to be managed because of dogs and the health and safety aspects of people walking around on farms. This is also about access to information. Hopefully, we can deliver environmental land management plans to let the community have that knowledge and make it publicly accessible. The community around me can access what we are delivering as farmers, and put it on their community pages, so when they use the countryside and the footpaths, they understand what we are delivering.
As an industry, we can communicate positive messages, and talk about some of the trouble and hassle we get from public access, how people can use the landscape, and the food and public goods that we produce. That should connect back to society, because much of society is disconnected from what the landscape is used for, the food and animals that are used, and the threats that can come from wandering around nesting habitats or letting your dog run free.
Thomas Lancaster: Access is a good one to talk about, in terms of thinking about how you can have a holistic approach to securing public goods and food, with a solid regulatory foundation. We would not want farmers and landowners to be paid to keep rights of way open. That is a legal requirement, so you would not pay for that through public payments. What you might do is to pay for permissive access where it makes sense to join up rights of way, and where there is a real desire to connect one part of the local community to another part, but currently there is no path to do so. The farmers we work with are almost always passionate about educational access. They really love the support for it that they get through current schemes and agreements.
There will be instances where access is not suitable for biodiversity reasons, or on a Ministry of Defence firing range or whatever. That points to the need to have really good advice and guidance when we develop future schemes, to enable whoever is putting together the land management contracts to do so in a way that balances all the public goods and secures the best net outcome from any given farm or area of land.
Gilles Deprez: My knowledge is not good enough for this question. It is important to have public access. From what I have seen, we have a lot of public footpaths in Cornwall, for example. It is not always easy, to be honest. If you have a public footpath that goes across the middle of your most productive area of land, it is not easy, but we are already doing it today.
Q
David Bowles: The RSPCA, like the previous witnesses, has huge anxiety about future trade deals. Let us look at the number of countries that we are looking to do trade deals with. At the moment we are obviously looking to do a trade deal with the EU. We have broadly a level playing field with the EU, because we have had animal welfare standards since 1974 and they cover most of the species in the EU. Of course we would like to see them higher, but they are pretty good. The EU and the UK have probably some of the highest animal welfare standards in the world, so that means that anybody else that we are trying to do trade deals with has lower standards—the only exception is New Zealand. The USA has hugely lower standards. Not only is it still using methods that are illegal in the UK, such as beef hormones or ractopamine, but it is also using standards that are illegal in the UK, such as the conventional battery cage and sow stalls.
The RSPCA would like to see an amendment to the Bill that was rejected by the House of Commons on the Trade Bill—that any trade deals would allow in only products that are produced at least to the standards in the UK. If we do not have that, we have a race to the bottom; we are just exporting our good animal welfare standards to somewhere else and we do not want to see that. We want to see a vibrant, healthy farming community in the UK, producing at higher welfare standards and giving the consumers what they want, not the bringing in of products and food that are produced to illegal or worse standards than here.
ffinlo Costain: I echo what David said, but I would also say that, in my meetings with Ministers and officials at DEFRA, I think there was a genuine commitment to improving farm animal welfare. I have been really heartened by that as we have been going forward. At the same time, there are some really challenging balances, exactly as David said. However, at the heart of this is what is the market in the UK, not only for our farmers at home, but abroad, and it is about quality. If we have lower standards coming in, it undermines our marketplace and our rural economy. It is essential that we recognise that we are never going to win a race to the bottom; we cannot. We can win a race to the top. We already have good quality products that could be much better quality in terms of welfare and the environment that we can sell as a story, as a whole product, whether that is branding, as Tom was talking about before—Cumbrian lamb or whatever—or whether it is selling branding at home; whether it is building the business case through public goods to our local communities and to the taxpayer for additional assistance in terms of land management and public goods; or whether it is underpinning the British brand and selling and promoting that quality around the world.
In addition, if we are building a market based on quality and reviving our rural economy, whether it is small, medium or large farm businesses, we will be developing new technologies and new machinery that we can also export. We want to see not only a growth in improved welfare and environmental standards, but a revival in the countryside. The Bill is a fantastic step in the right direction, but it is just framework legislation. We need to see more work in the future—for example, the gold standard work that DEFRA is engaged in.
Simon Doherty: I agree with the two previous correspondents entirely. I will not repeat everything that they have said. We have had some very encouraging, strong lines from DEFRA. The disappointment has been that there have been weaker lines from the Department for International Trade. We need to make sure that there is a join-up across Government to make sure that we are all singing off the same hymn sheet in relation to welfare, so that we do not have one part of Government saying one thing and another part doing another. Obviously, I will say this as the president of the British Veterinary Association. We feel that we are absolutely at the juxtaposition of animal health and welfare. We are here today because the role of the BVA is to represent the veterinary profession to Government. We hope that one of the outcomes across the board will be a recognition of the role of vets in veterinary public health, in animal welfare, in animal health, and ultimately in food security for the country.
David Bowles: Of course, the other way to stop this, apart from in trade deals, is to give the consumer information. At the moment we only have one mandatory method of production label, which is on eggs, and we know that that has worked. It has driven the market up to 55% now for free range eggs, because the consumers wanted that. We hope that in the Bill we get some mandatory method of production labelling going into other areas. There is a chance of getting that. I know the Government share some of that enthusiasm, and that would be really good. The consumers always say they want higher animal welfare, but some of the time they are confused because the label does not show that.
ffinlo Costain: The evidence shows that, where method of production labelling exists, at least 50% of consumers choose the higher welfare option, which is often a little more expensive. Method of production labelling is not only important in terms of helping to drive that market, but is really about improving communication. There is a big disparity between, particularly, people who live in the city, but also often people who live in the countryside as well, and the way that food is produced; I do not know whether that is driven by CBeebies. I have a four and a six-year-old and they constantly see one model of farming that does not necessarily reflect the way that farming is. Labelling and communication in general builds the case for improved prices and for commitment to local farmers, or farmers at a British level, and across the board. I think it is really important.
Q
David Bowles: One of the most exciting things about trade deals at the moment—if I can use the words “exciting” and “trade deals” in the same sentence—is that we are starting to see language in them about equivalence on animal welfare standards. The EU has been a driver for this. It started with South Korea and has now got it with Chile, and it is looking at getting it with Mexico as well. That is a real incentive. We want to see similar language on equivalence with the EU, as well as with others. RSPCA Assured has shown that raising animal welfare standards can be done on a commercial basis—consumers will vote with their purses if they are given the right information and if there is enough transparency on the retailer market shelf—but some specific language on equivalence needs to be put into trade deals.
ffinlo Costain: Being in the lead is not something that continues unless you keep working at it. There are areas in which other countries are catching up with the UK, and possibly one or two in which they are starting to move ahead. It is therefore critical that we have metrics to measure the inputs and outcomes, and to understand at a national level where we want to be and how successful policy is at making that progress. We should be leaders—this is our opportunity. We will not win the race to the bottom, but we can win on quality by selling at home and selling abroad.
Look at Origin Green in Ireland. It is a unique national brand, although its climate outcomes are nowhere near as strong as what I would like to see. If we had a national brand based on metrics for climate change and biodiversity, with farm animal welfare used as a critical indicator of progress in both areas, it could be part of our gold standard work. It would underpin our progress and ensure it continues, and be a national brand that we could sell abroad. Origin Green is a really good place to look for an opportunity that we could quickly overtake and surpass in export and home production.
Simon Doherty: There is a huge commercial advantage from other parts of the world opening up to exploring improved animal welfare. We have consultancy firms such as FAI Farms that are working globally to help other jurisdictions to raise their standards towards those that we work at in Europe and in the UK.
I mentioned the underpinning research and development that is going on in the field of animal welfare. There are certainly other parts of northern Europe that are working on curly tails on pigs, for example, or improving health indicators such as mastitis or lameness in dairy cows. We have that world-class expertise across the board, and we need to continue to build on it. We also need to ensure that the funding is there to underpin that research.
Q
David Bowles: We have been working with Dame Glenys Stacey on her review. Slightly worryingly, she has said that its recommendations will not be published in time for the Bill. There is a mismatch in terms of how we ensure good enforcement, particularly now that cross-compliance is ending, so we would like to see a commitment in the Bill to implementing some of the Stacey review’s recommendations on enforcement. The Government’s own research has shown that those who farm under a welfare assurance scheme, particularly one such as RSPCA Assured, are much less likely to break the law. We would like to see payments given to higher welfare assurance schemes, not just because they produce animal welfare benefits, but because they improve enforcement.
ffinlo Costain: We would like to see a reduction in the paperwork that farmers need to do. Reducing that burden is important if farmers are to become more productive and efficient, but we also want to see an increase in what is measured. We can achieve that by promoting self-assessment on farms and farmers’ participation in assurance schemes, and by increasing the measurement of data collected on use of technology to assist farmers, so that they feel the benefit day to day. We also need to work with slaughterhouses on livestock to ensure that we are doing much more measurement and standardising it. By pinning all that work together—self-assessment, technology, use of data and use of slaughterhouses—we can measure more, measure more effectively and reduce the burden.
(7 years, 11 months ago)
Public Bill Committees
The Chair
Mr Davies, feel free to respond to your constituency MP.
John Davies: Thank you, Sir Roger. Perhaps I can have slightly more freedom, being president. I regularly sit round a table with the presidents of Ulster, Scotland and England. In Wales we are very keen to see the best policy being copied or used, whichever country it comes from. We need to ensure that that fits the bill for the needs of Wales, which are unique and rather special. We need a bit of flex within a UK framework.
Dr Fenwick: It is important for me to say that we were extremely disappointed. As has been made clear, we are opposed to what is proposed in England and Wales. It is untried and untested, and there are big questions about its economic viability and impacts, so naturally, it was a grave concern. The Minister is aware of our concerns; we have discussed them on many occasions. We had hoped that Wales would do what it has done in the past, which is to undertake detailed modelling and work out what is best for our rural economies, rather than simply follow England’s lead.
Q
Huw Thomas: That is the position that Scotland finds itself in. It is a difficult position, because it does not have anything to consult on, to discuss with its members or to try to formulate a policy from. It is a bit invidious, I suppose. It is quite aligned with DEFRA. We have our reservations about what is proposed, but we need to move forward somehow.
I hope that the consultation that the Welsh Government are undertaking is a genuine consultation where all options will be on the table and where they will be prepared to listen, because our members are concerned about several things contained in the document. We are working closely with our members and gathering a view on it.
Q
What opportunity, if any, do you think the Bill presents in terms of its ambition to support food production and to allow farmers to come together to better promote their produce in a more patriotic way, free of the EU guidelines that have often acted as a dampener on the patriotic promotion of provenance? What scope is there in the Bill and in the envisaged regime for supporting innovation and productivity?
John Davies: You are right to pick up on product innovation, which has been sadly lacking in the lamb sector, because they consider it easier to add cost than value in those things. That is something that we have to adapt to with the modern consumer, because we are seeing year-on-year reductions. We accept that challenge and we need to move forward with it. There are some good things in the Bill about producer organisations. Obviously, we would like to see a stronger focus on product development and innovation and how we can support that.
Dr Fenwick: I agree entirely. Those elements of the Bill have to be welcomed, and we certainly do welcome them. The trouble is that, while that is happening, there is a risk that another Department or another part of Government is opening the floodgates to cheap imports. Effectively, there are elements of the Bill that tighten up our own production standards and so on, but meanwhile we are opening the door to cheap imports. It is fine for the middle classes who decide to buy their organic burgers or whatever they buy, but I am afraid that most consumers shop in less salubrious supermarkets. They buy quality food because we are in the EU, but once we have trade deals with other countries, there is a big question mark in terms of the cost of production in other countries and the degree to which, for the bulk of food, it could undermine our market.